Ramelius to Buy Back 73.9 Million Shares Over 18 Months Starting December

Ramelius Resources Announces Buy-Back

Ramelius Resources Limited (ASX, RMS), a notable player in the gold mining sector, has formally notified the ASX of its intention to conduct an on-market buy-back of its ordinary fully paid shares. The company plans to repurchase up to 73,964,497 shares, representing a modest portion of its total 1.92 billion shares on issue.

Details and Timeline

The buy-back is scheduled to commence on 24 December 2025 and will run through to 23 June 2027, providing Ramelius with an extended window to execute the program. UBS has been appointed as the broker to facilitate the transactions on behalf of the company. While the exact price at which shares will be bought back has not been disclosed, the consideration will be paid in Australian dollars.

Strategic Implications

This move does not require shareholder approval, indicating that Ramelius is leveraging existing board authority to manage its capital structure proactively. On-market buy-backs can serve multiple strategic purposes, returning surplus cash to shareholders, supporting the share price, or improving earnings per share by reducing the number of shares outstanding.

Given the scale and duration of the buy-back, investors may interpret this as a sign of confidence from management in the company’s financial position and future prospects. However, the absence of a fixed buy-back price leaves some uncertainty regarding the timing and financial impact of the purchases.

Market Context

In the broader mining sector, buy-backs have become a favored tool for companies to optimise capital allocation amid fluctuating commodity prices and operational costs. Ramelius’s decision aligns with this trend, potentially positioning the company to enhance shareholder returns without committing to dividends or other cash outflows.

Investors will be watching closely to see how the buy-back unfolds, particularly how the market responds to the repurchase activity and whether it influences the stock’s valuation in the medium term.